On July 1, 2010, Spahn Co. pays $18,000 to Randle Insurance Co. for a 3-year...
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On July 1, 2010, Spahn Co. pays $18,000 to Randle Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. Prepare the journal entry on July 1 and the adjusting entry on December 31 for Randle Insurance Co. Date Account/Description Debit Credit July 1 Unearned Insurance RevenuePrepaid InsuranceCashInsurance RevenueAccounts PayableInsurance ExpenseAccounts ReceivableAccrued Insurance CashAccrued InsuranceAccounts ReceivableInsurance RevenueInsurance ExpenseUnearned Insurance RevenuePrepaid InsuranceAccounts Payable Dec. 31 CashAccounts PayableUnearned Insurance RevenueInsurance ExpenseAccrued InsuranceAccounts ReceivablePrepaid InsuranceInsurance Revenue Insurance RevenueAccounts ReceivableAccounts PayableAccrued InsuranceCashUnearned Insurance RevenueInsurance ExpensePrepaid Insurance Using T accounts, enter the balances in the accounts below, post the adjusting entry as necessary, and indicate the adjusted balance in each account. (If there is no transaction, enter NA as the date and 0 for the amount. Do not leave any fields blank.) Unearned Insurance Revenue Dec. 31July 1NA NAJuly 1Dec. 31 12/31 Bal. 12/31 Bal. Insurance Revenue Dec. 31July 1NA July 1NADec. 31
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